Which of the following should be applied when preparing financial statements for external financial reporting purposes (that is consistent with generally accepted accounting principle) ?

All of these can be applied

absorption costing

variable costing

cash basis accounting

Which of the following would be assigned to inventory under variable costing method?

Rental payments on factory

variable selling and administrative expenses

variable manufacturing overhead

fixed product costs

Under variable costing contribution margin is equal to

Sales- Variable costs- Fixed costs

Sales- Variable COGS- variable operating expenses

sales- variable product costs only

it is the same as the net income